If you’ve been in business for at least a year, you may be contemplating a business credit card to access funds and build credit. According to the National Small Business Association’s 2018 mid-year economic report, more than 35% of the businesses surveyed had used a credit card in the previous year to meet capital needs.
Though for those of us that need working capital the most, poor credit or absence of operational history limits our options. If this sounds like you, you’re not alone. In a Federal Reserve Small Business Survey, more than a third of business owners who applied for credit were denied due to a low credit score, too much existing debt, insufficient collateral, or too new credit history.
But is a credit card the only, or best, choice for your small business? There is another option: the Revenued Business Card. How does the Revenued Business Card compare to credit cards? To find out, let’s take a closer look.
Approval and Spending Limit Doesn’t Depend on Credit Rating
The obstacles that stood in your way when applying for a credit or charge card will not be a problem with The Revenued Business Card — mainly because our card is not a credit card. Applying for a Revenued Business Card does not entail:
- Checking your business credit score — The Card will not affect your business or FICO credit score, since it is based on your business revenue and ability to make payments rather than your credit history.
- Checking your personal credit score — Revenued only performs a soft credit pull when applying for the card, so your credit report will not have a “hard inquiry” to drag down your score as a credit card check would.
As we have stated, the Revenued Business Card is not a credit card and has many key differences. Yet let’s look at aspects of the Revenued Business Card that compare to traditional business credit cards, and how those features can benefit your business.
Earn Cash Back
Credit cards often have built-in rewards programs where business owners earn points, cashback, or airline miles for every dollar they spend on the card. However, these perks are limited because points can sometimes only be used at the card issuer’s “online mall,” so you are restricted to the products they offer. Airline miles often have extensive blackout dates, and if you don’t travel frequently, they could expire before you can even use them.
The Revenued Business Card’s rewards program* is structured to improve over time with good payment performance. The more of your limit you spend, the more you earn.
Get Cash Directly Into Your Bank Account
By using our online portal you can instead of swiping your card to pay for a purchase use it to deposit directly into your bank account. This draw feature is not a feature most business cards have and usually require a separate line of credit. Every Revenued Business Card comes with an already approved draw feature that you can use to pay for things like payroll that you can’t easily use a card for.
No Personal Guarantee
Unlike most credit cards since the card is not based on your personal credit we don’t require a personal guarantee. If you comply with the terms of our agreement and your business fails you won’t have to pay for the card balance personally.
Your Balance Doesn’t Extend Forever
You know the secret behind those 0% credit card transfer offers? If you don’t pay off the balance in time you can end up paying over years 300% of what you originally charged. The Revenued Business Card is a purchase of future sales that is debited daily from your bank account. It is over usually in less than a year once the sales are transferred. It doesn’t go forever.
Pay for Only What You Use
Some forms of business financing like traditional bank loans, invoice factoring, or a Merchant Cash Advance (MCA) give you the full amount of your funding upfront. That is great if you know exactly how you want to use the money and can put it to work right away. If you put it in the bank while you finalize your spending plans, however, you will still be paying for those funds through interest or a factor rate applied to your balance.
Credit cards give you a spending limit and only charge you for the portion of that limit that you are utilizing. The interest rate does not kick in until you make a purchase, and you only pay interest on the balance, not the full line of credit available to you. The Revenued Business Card compares to credits cards in that it works similarly.
For example, let’s say your business acquired a Revenued Business Card with a spending limit of $100,000 and a factor rate of 1.1. You only need $10,000 right now, so you use what you need and retain $90,000 in spending power for future use. Your payback would be $11,000 (10,000 x 1.1), so it would cost you $1,000 to use that $10,000.
If you had an MCA with a $100,000 cap and a 1.1-factor rate, you would be on the hook for a $110,000 payback whether you used all of the advance or just a small portion. So your cost would be $10,000 no matter what, even if $90,000 or more was just sitting in your bank account waiting to be spent.
The Convenience of a Credit Card
Most of us are familiar with how convenient it is to use a credit card or debit card for purchases. You can swipe the card or use the embedded chip to pay right in the store. Most brick and mortar merchants, including restaurants, gas stations, and office supply stores, accept credit cards. You can also use the card number to make purchases or pay for services online.
When you are approved for a Revenued Business Card, you will receive a physical card to access your funds in the same way that you would use a credit or debit card. This card looks similar to a credit or debit card and includes:
- A 16-digit account number
- The expiration date of the card
- Your name
- An EMV payment chip
- A magnetic strip on the back to swipe the card
The Revenued Business Card Advantage
The Revenued Business Card has all of the convenience of a credit card without the credit score requirements that may have kept you from getting a business card in the past. Earn cashback bonuses, only pay for what you use, and use the convenient Revenued Business Card to pay any merchant set up to accept credit cards.
Contact us today to learn more about the revolutionary Revenued Business Card. Call (855) 943-5363 or fill out our online contact form.
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